Centrus Energy Reports Strong 2024 Results, Driven by Revenue Growth and Strategic Initiatives

Centrus Energy Corp. (NYSE American: LEU) ("Centrus" or the "Company") reported robust financial results for the full year 2024, reflecting the company's strategic initiatives and market conditions. The company's revenue grew by 38% to $442.0 million, driven by higher uranium prices and increased HALEU operations. The strong performance was supported by a strategic pension de-leveraging, which reduced obligations by $277.5 million, improving the company's financial profile with pension funding now at 118%. Additionally, the company received a $62.4 million IRS credit allocation for manufacturing expansion, demonstrating government support for domestic capabilities.



Centrus Energy's 2024 performance was marked by several key developments:

1. Revenue growth: The company's total revenue increased by 38% to $442.0 million, driven by a 50% increase in the average price of uranium sold and a 13% increase in the volume of uranium sold. Additionally, the average price of SWU (Separative Work Unit) sold increased by 24%, leading to a 19% increase in SWU revenue. This was partially offset by a 4% decrease in the volume of SWU sold.
2. HALEU operations: Revenue from the Technical Solutions segment grew by 80% to $92.1 million, primarily due to the transition from Phase 1 to Phase 2 of the HALEU Operation Contract. This shift resulted in a cost-plus-incentive-fee arrangement, which increased revenue.
3. Strategic pension de-leveraging: Centrus Energy reduced its pension obligations by $277.5 million, improving its pension funding ratio to 118%. This reduction in pension liabilities frees up capital for the company to invest in growth and expansion, reducing the risk associated with underfunded pension plans.
4. IRS credit allocation: The company received a $62.4 million IRS credit allocation for manufacturing expansion, demonstrating government support for domestic capabilities and Centrus Energy's strategic initiatives.

Centrus Energy's strong 2024 performance reflects the company's ability to capitalize on market conditions and execute its strategic plans. The company's focus on expanding its enrichment plant in Ohio, investing in centrifuge manufacturing activities, and securing significant contracts with major international clients, such as Korea Hydro & Nuclear Power (KHNP), positions Centrus Energy for future growth and success in the global nuclear fuel market.

In conclusion, Centrus Energy's 2024 results demonstrate the company's ability to execute a sophisticated strategy, capitalizing on the growing nuclear fuel market and strengthening its financial profile. The company's strong revenue growth, strategic pension de-leveraging, and government support for domestic capabilities position Centrus Energy for continued success in the years to come.